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Natural Resources: Are They Really a Curse?

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  • Alexandr Cerny
  • Randall K. Filer

Abstract

The curse of natural resources detected in numerous cross-country growth regressions isquestioned. Although natural resource dependence is associated with slow economic growth, there is no evidence that natural resource abundance per se is negatively related to growth. Thus, the supposed link between resource dependence and growth arises not from the numerator of the dependence measures (i.e. resources themselves) but rather, because of the inherent relationship between slow growth and a small non-resource sector caused by other undetermined characteristics of the economy.

Suggested Citation

  • Alexandr Cerny & Randall K. Filer, 2007. "Natural Resources: Are They Really a Curse?," CERGE-EI Working Papers wp321, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    • Handle: RePEc:cer:papers:wp321
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    Cited by:

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    2. Ruslan Aliyev, 2012. "Monetary Policy in Resource-Rich Developing Economies," CERGE-EI Working Papers wp466, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    3. Thomas C. Kinnaman, 2023. "A New Perspective on the Natural Resource Curse," World, MDPI, vol. 4(4), pages 1-14, October.
    4. BENYOUB, Mohammed, 2018. "L’impact De L’investissement Des Revenus Pétroliers Sur La Croissance, L’inflation Et Le Chômage : Cas D’Algérie (2000-2015) [The Impact of Oil Revenue Investment on Growth, Inflation and Unemploym," MPRA Paper 90489, University Library of Munich, Germany, revised 05 Jul 2018.
    5. Shao, Shuai & Yang, Lili, 2014. "Natural resource dependence, human capital accumulation, and economic growth: A combined explanation for the resource curse and the resource blessing," Energy Policy, Elsevier, vol. 74(C), pages 632-642.
    6. Gasmi, Farid & Recuero Virto, Laura & Couvet, Denis, 2022. "Empirical analysis of the anthropogenic pressure on the mangrove blue carbon-economic growth relationship," TSE Working Papers 22-1307, Toulouse School of Economics (TSE).
    7. Gasmi, Farid & Recuero Virto, Laura & Couvet, Denis, 2023. "An empirical analysis of economic growth in countries exposed to coastal risks - Implications for their ecosystems," TSE Working Papers 23-1399, Toulouse School of Economics (TSE).

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    More about this item

    Keywords

    Natural resources; Economic growth; Institutions.;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development
    • Q38 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Government Policy (includes OPEC Policy)

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